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MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10 th & 11 th , 2013 The Address Hotel

MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

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Page 1: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

MEFMA CONFEX 2013 ENGAGING THE REGIONS

BUILT ENVIRONMENT

February 10th & 11th, 2013 The Address Hotel

Page 2: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

WITH THANKS TO OUR SPONSORS

Page 3: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

From Industrial Revolution to Sustainability Revolution – The business

of fixing our futures

JASON DREW KEYNOTE SPEAKER

Page 4: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Rethinking the World of Work

DR. MARIE PUYBARAUD DIRECTOR OF GLOBAL WORKPLACE INNOVATION

JOHNSON CONTROLS

Page 5: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Research & Innovation

Rethinking the World of Work

• Dr. Marie Puybaraud • Director, Global WorkPlace Innovation • Johnson Controls

Page 6: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Automotive Experience 240 locations

$ 20 billion

Power Solutions 27 locations $ 5.9 billion

Global leader in automotive seating,

overhead systems, door and instrument panels, and interior electronics

Johnson Controls has three world class, growth businesses

Global leader in lead-acid automotive

batteries and advanced batteries for Start-Stop,

hybrid and electric vehicles

Building Efficiency

500 locations

$ 14.9 billion

We create buildings and

environments in 125

countries that help

people and businesses

achieve

Page 7: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Global WorkPlace Innovation

SUPPORT CUSTOMERS needs and deliver advanced SOLUTIONS

Drive INNOVATION and THOUGHT LEADERSHIP

CHALLENGE the status quo, leading change and delivering ADDED VALUE

R&D framework

Knowledge and Intellectual Capital

Customer centric offering

www.globalworkplaceinnovation.com

Page 8: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Genesis of GWi

Global WorkPlace INNOVATION

2004 RFID Space

Utilisation Tool

2

Vis

ible

Liv

ing

Lab

2007 Tomorow’s Workplace

3 Sm

art

Wo

rkp

lace

Fu

ture

s St

ud

y

Facilities Innovation

is created at UWE

1

Flex

ible

Wo

rkin

g +

Mo

bili

ty

2009 Smart Workplace

2030

4

Wo

rkp

lace

Fu

ture

s

2010 Oxygenz

9000 respondents

5

Ge

ne

rati

on

s @

Wo

rk

FY13 Plan

Page 9: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Global WorkPlace INNOVATION

Engagement Toolkit +

Diagnostic Tool

10

Sust

ain

able

Wo

rkp

lace

:

Cre

atin

g G

ree

ne

r W

ork

pla

ce

Latest report published

9

Dig

ital

Nat

ive

s: B

orn

to

be

Co

nn

ect

ed

Roadmapping the

Future

11

Latest report published

8

NEW

Co

llab

ora

tio

n 2

02

0:

H

ype

or

Co

mp

etit

ive

Ad

van

tage

?

Page 10: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Research & Innovation

Roadmapping the future

1 2 3 Watching the Future through

Roadmapping

Emerging trends, developments and

disruptors

Responsiveness and readiness

Page 11: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Research & Innovation

Roadmapping the future

2 1 3 Watching the Future through

Roadmapping

Emerging trends, developments and

disruptors

Responsiveness and readiness

Page 12: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Societal

Demographics

Environmental

Technological

Sociological

Governance

Mapping Trends

2040

2008

Page 13: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Our roadmap

Megatrend e.g. Aging Society, Sustainability

Disruptor e.g. Decrease of water resources, Climate change

Macrotrend e.g. Cradle to Cradle, Nanotechnology

Microtrend e.g. Pop up Spaces, DIY, Buy Local

Page 14: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

The power of Roadmapping

• It is not only a big library of trends!

Forecasting and anticipating change

Tracking meaningful combinations of trends

Building scenarios

Page 15: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

2015

B.Y.O.D. Choosing technology like you buy

a company car

Page 16: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

2017

Buy Local eBay can deliver in an hour

Page 17: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

2019

Experience Society

Your coffee maker can paint a picture

Page 18: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

1 3 Global WorkPlace Innovation

Responsiveness and Readiness 2 Emerging trends,

developments and disruptors

Page 19: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Emerging

Trends

Trends, Disruptors and Developments

Evolutionary

Revolutionary

Blue Sky

Trends

Page 20: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Emerging Experience Society

Seamless

Sensuality

Edutainment/Gamification

Big Data

Nanotechnologies

Experience Design

Simplicity and Individualism

Trends, Disruptors and Developments

Evolutionary

Revolutionary

Blue Sky Shy Tech

Outernet

Cybercare

Modularity

Energy harvesting

Biophilic Design

Page 21: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Buy Local

Green Luxury DIY Health

Renewable Energies

Green Trucks

Preventive + Customised

Care Smart Cities

Functional Clothes

Cyber Security

Roadmapping Focusing on a selection of emerging trends

Connected Car

Supply Chain Consolidation

Eco Materials Virtual R&D

Obesity Female Shift

Green Aesthetic

Edutainment

Ethical Consumption

Info on demand

2014

Experience Society

Business Nomads Asset Heavy to

Asset Light

The Internet of Things

Creative Workplace

Retail Gamification

Edutainment

Page 22: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

2012 to 2018

Experience Society

Cyber Security

Compensative Society

Convergence on/off line

Creative Workplace

Augmented Reality

Virtual relationships compensate for ‘real’ physical relationships.

The industrialized version of large office floors with cubicles will disappear,and new office

concepts will appear, that perceive the office holistically, and subdivide it into different zones: sensory space, presentation space,

lounge, bar, instructional space, reading space. 78% agree that ''the way the workplace looks is

a reflection of that company's corporate culture''.

Experience society describes a social condition in which

individuals are focused on maximizing individual/personal

enjoyment and indulgence.

Supply Chain Consolidation

Ethical Cons<umption

Info on demand

2014

Business Nomads

Rebirth of 9 to 5

Low R&D Productivity

Emerging Clusters in LS

Page 23: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

2019 to 2024

The Yen as a reserve currency

Preventive + Customised

Care

‘Third Places’ Offices

Sustainable manufacturing

Green Trucks

The Internet of things Five senses

immersion

Cashless society

Cyber-war IP everywhere

Modular factories Asset Heavy to

Asset Light

Life harmony

Info Flood - Zettabyte

Simplicity

Car-to-car communication

Adaptive Cars

Connected life

Growing awareness that a fulfilled life requires a balance

of work, senses, health and relationships.

The technology behind virtual reality is leading us to a virtual environment

that is as close as possible to the ''real thing'', by stimulating all human

senses in a fully immersive, perceptual experience.

Mobility

BIG DATA

Page 24: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

2025 to 2031

Workplace automation

Energy sustainability

Transparency

Holographic interaction

Virtualisation/ digitalisation

Zero waste

Distributed intelligence

Online privacy

Virtual R&D

Call a car Mobile services

People can contribute to good causes, research projects, product and service development, with

the help of applications that passively use the sensors of smart phones or the idle computing

power of their PCs to feedback data to the respective project developers.

Greater collaboration between industry, academia, regulators and healthcare providers, will lead to a better understanding of the inner workings of the human body and the pathophysiology of disease. New technologies, will enable the virtualization of

the R&D process.

Page 25: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

1 3 Global WorkPlace Innovation

Measuring the Value of CRE 2 Emerging trends,

developments and disruptors

Page 26: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Redefine the World of Work

Experience Society

Green Aesthetic Pixels Everywhere

Intensive Collaboration

Digital Nomads

Total Engagement

Page 27: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Experience Society

Redefining the Experience of Work 94% of the ideas are not generated at work

Source: Collaboration 2020: hype or competitive advantage – 2012, Johnson Controls, Inc.

YNNO

Page 28: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Green Aesthetic

Beyond Sustainability 94% want their employer to go BEYOND environmental compliance and actively engage in green solutions at work Source: Oxygenz – Multigenerations at work – 2012, Johnson Controls, Inc.

RCA

Page 29: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Pixels Everywhere 62% of our respondents consider a high use of touch-only computing device (ex: iPad) in 2020 - 16% now Source: Digital Natives: Born 2 B Connected – 2012, Johnson Controls, Inc.

Pixels Everywhere

Johnson Controls

Page 30: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

The office: a collaborative platform Use of team spaces that have built-in collaborative technologies increase from 20% to 52% towards 2020 Source: Collaboration 2020/ hype or competitive advantage – 2012, Johnson Controls, Inc.

Intensive Collaboration

Johnson Controls

Page 31: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Nomadism is the norm 73.6% of Digital Natives agree to completely agree

that new technologies are ADDICTIVE Source: Digital Natives: Born 2 B Connected– 2012, Johnson Controls, Inc.

Steelcase

Digital Nomads

Page 32: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Gamification of the Workplace Farmville is played by about 31 million people every day

Source: Farmville

Total Engagement

Page 33: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Responsive and adaptable environments

Intensive collaboration

New work experience

Digital environments

Nomadic behavior

How to prepare? Be receptive and adaptable

Total engagement

Page 34: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Experience

Experience

Social

Technology

Society

Space

Always connected Life 4.0

Collaboration

Intuitive Shy Technologies Virtual Tunnels

Engagement

Happiness/Fun Collectivism vs Individualism co-creation

Sensory Environments Experience Design

Virtual Spaces

Page 35: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Towers Watson – a survey of 32,000 persons

• Businesses appear to be at a critical tipping point in their ability to

maintain engagement over time • Creating an environment that’s energizing to work in because it promotes

physical, emotional and social well-being. In such an environment, you can see and feel the pulse of activity — the intense discussions, lively video- or

phone conferences, the groups working a project plan on an online whiteboard in real time.

Page 36: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Drivers of Change

• Diversification of work & spaces

• Collaboration and co-creation

• Virtual teams

• Flexible/Adaptable R&D spaces

Page 37: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

1 Global WorkPlace Innovation 2 Emerging trends,

developments and disruptors 3 Responsiveness and

Readiness

Page 38: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Are we

prepared?

Page 39: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

2019

Cybersecurity

As more and more people and devices are connected in the

cyberspace, there is increasing concern about its

security

Page 40: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Eco-materials are on the rise as they are bio-based, highly recyclable, do not require extensive use of chemical

additives in its manufacture, creates less harmful waste in production, and generally are environmentally friendly

in its entire life-cycle

2020

Eco Material

Page 41: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

2021

Edutainment

The use of videos, simulations, virtual platforms, games and game mechanics or social media in order to engage the

new generations of employees in corporate learning and training,

workshops or team-buildings and make these sessions more fun and efficient

Page 42: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

"Shy-Technology“ represents a counter trend to increasing technological

complexity .

It describes a technology which is not overpowering. Technological complexity is hidden behind a surface that is simple

and intuitive to operate

2021

Shy Tech

Page 43: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

The internet is jumping onto the streets and becoming the outernet

due to mobile devices, smart phones and mobile flat rates.

2021

Outernet

Page 44: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

def

The concept of Smart City, as a direction for the future of urban development,

refers to a city performing in a forward-looking way in several fields of activity:

economy, mobility, environment, people, quality of life and governance

2021

Smart Cities

Page 45: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Big data refers to the huge amount of information generated every day,

whether we are talking about companies gathering data about transactions, clients, suppliers, or

sensors embedded everywhere in the physical world sensing and transmitting

data

2022

Big Data

Page 46: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Human Machine Interaction is the study of interaction between people and

computers. It is an interdisciplinary field, connecting

computer science with many other disciplines such as psychology, sociology

and the arts

2030

Human

Machine Interaction

Page 47: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Open question

• Have you seen examples across your industry where this is being applied?

• Could you see any potential impact on CRE?

Our Global WorkPlace Innovation website: www. globalworkplaceinnovation.com

Leading Workplace Change Thank you

Page 48: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

THANK YOU!

Page 49: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

MEFMA CONFEX Coffee Breaks Sponsored By

Bon Appetit!

Page 50: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail
Page 51: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Engaging the OA Boards in the decision-making process

JEEVAN J D’MELLO SENIOR DIRECTOR

EMAAR COMMUNITY MANAGEMENT LLC

Page 52: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Overview of OAs JOP Law (27 of 2007)

– Division of property into Units and Common Areas by horizontal and vertical/volumetric sub-division

– Where owners form an Owners Association

Owners Association – OA – Legal entity which manages a community/common areas – Made up of all owners of the community – Represented by a Board – Similar in nature to a Company, except non-profit – Obligations & Powers of OA are set in the Constitution

The classic vision of an OA is “To protect, maintain and enhance the value of the community.”

Page 53: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Functions & Powers of an OA Among the functions of the OA are to:

– Ensure that community is maintained in good condition – Properly repair, maintain, renew and replace common assets – Review and Approve budgets and charges

The powers of an OA include the power to:

– Enter into supply and service agreements (thru Developer if needed)

– Remedy defective building work in relation to Common Areas – Carry out work where Owner has failed to carry out that work

as per obligations & recover costs – Do anything else for the purpose of carrying out its duties and

functions under the law or its Constitution.

Page 54: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Roles & Responsibilities of IBs

The Role of the Board/Interim Board (IB) – Constitution states that the Board shall be responsible

for ensuring that the OA carries out its functions under the law

– The Board acts and makes decisions on behalf of the owners or members in the OA.

– Its role is to set policies, procedures, standards, programs

– It has the function and power to review and approve OA budgets and appoint service providers.

– And, monitor the performance of the Association Manager (AM)

Page 55: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Who are the decision makers

– The Board sets Policy- The AM carries out those policies.

– The AM facilitates the budgeting and tendering process for the Board’s review, endorsement and selection.

– The Board makes the decision based on advice from the AM and their own judgment

– Decision should be based on a majority vote

– Typically a General Assembly should be called to take a general vote of OA members

Page 56: MEFMA CONFEX 2013mefma.org/images/stories/pdf/Confex2013Pres-Day2.pdf · 2014-05-14 · MEFMA CONFEX 2013 ENGAGING THE REGIONS BUILT ENVIRONMENT February 10th & 11th, 2013 ... Retail

Where does FM fit in?

– The Board represents the OA

– The AM represents the Board, carrying out its instructions

– The FM company is a Service Provider to the OA

– AMs supervise the work of the Service Provider on behalf of the Board

– AM & FM companies work together and complement each other to provide a seamless service to the OA

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Where’s it going wrong

– Confusion between roles of AM and FM

– Overlapping of tasks between AM, FM and Board

– Lack of relationship between FM and Board

– Inadequate understanding of JOP Law, Board role and OA needs by FM

– Inadequate understanding of technical, HSE and related matters by AMs and Boards

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How to change this

• Research the OA/Board before making your bid

• Learn about the Board’s vision for the community

• Ask to present your case to the Board

• Propose ideas & methods to reduce costs and increase efficiencies

• The Board members may not be technical - Educate them on technical, HSE and related subjects

• Network with AMs to understand their requirements & expectations

• Create win-win relationships with Boards and AMs

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The landscape has changed

– The future of freehold communities are in the hands of OAs and Boards

– Owners decide quality of service, service charges and service providers

– FM companies must focus on awareness and business development with Boards and Ams

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THANK YOU!

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Engaging the Region

The Voice of MEFMA

TIM CASSWELL CONFEX ARTIST

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MEFMA CONFEX Lunch Sponsored By

Bon Appetit!

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Challenges of Integrated Facilities Management – The service provider’s

perspective

NISHANT RAVINDRAN GENERAL MANAGER

INAYA FACILITIES MANAGEMENT SERVICES

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Facilities Management Market

• The facilities management industry in the GCC is structured into three groups

◊ Single service providers

◊ Bundled service providers

◊ Integrated Facilities Management (IFM) service providers.

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Integrated Facilities Management

• Offers comprehensive one-stop solutions, which cover the whole spectrum of management functions and operational FM services

• Customized mix of hard and soft services delivered in-house / outsourced

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Benefits to the client

Reduce cost Streamline operations and simplify processes Improve operational efficiency Improve service delivery Reduce management complexity Transfer of risk Drive consistency across the portfolio Gain economies of scale Introduce best practices Improve data, technology, and reporting Drive continuous improvement Provide a more flexible, scalable delivery model Source : http://www.kpmginstitutes.com/

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Challenges of Integrated Facilities Management

• Tendering process

• Contract and SLAs

• Managing the supply network

• Performance Management

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The Tendering process

• Challenging time lines for bid submission

• Incomplete asset information

• Comparison of bids difficult due to the complexity of the bundled offering

• Price remains the main driver

• Critical issues often overlooked

• Minimal consideration to current service provider even if exceptional

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• Tendering process

• Contract and SLAs

• Managing the supply network

• Performance Management

Challenges of Integrated Facilities Management

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Contracts and SLAs • Lack of clarity in the scope

• Non-negotiable SLA almost entirely formulated by the client

• Performance targets often unrealistic

• Zero sum game (All penalties & no incentives)

• Few incentives for value added services

• Challenging mobilization periods

• No acclimatization period

• KPIs based on quantifiable service aspects only

• Input based specifications

• Short term contracts

• Termination on convenience clause

• Similar penalties across KPIs without regard for their criticality

• End users seldom consulted to determine effectiveness of service provider

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• Tendering process

• Contract and SLAs

• Managing the supply network

• Performance Management

Challenges of Integrated Facilities Management

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Managing the supply network

Simplifying the supply chain for the client

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Managing the supply network

• Managing risk in the complex supply network

• Short term arm’s length relationships

• Opportunism

• Communication

• Cash flow management

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• Tendering process

• Contract and SLAs

• Managing the supply network

• Performance Management

Challenges of Integrated Facilities Management

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Performance Management

Service Outcome

Service Process

Service Quality

• Limitations of SLAs & KPIs

• Lack of commitment in supplier relationships

• Gaps in the Service profit chain

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RECOMMENDATIONS

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Tendering process

• Focus to shift from price to quality and reliability of service delivery

• Optimize contract duration • Tender evaluation to consider*

ability of the supplier to come up with the initiatives that reshape the relationship to meet ongoing objectives

ability and willingness of the supplier to set and meet concrete and measurable service levels

ability of the supplier to commit to and meet specific financial targets

Performance of current supplier and re-tender only when this is found unsatisfactory

* Facilities Management Handbook , 4th Ed , Frank Booty

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SLAs & KPIs

• SLAs and KPIs to be jointly agreed by client, service provider and end user as required

• KPI targets to be kept realistic • Penalties and incentives to be balanced • Supplier to be rewarded for ideas and

revenue opportunities, with rewards reflecting the benefits brought by the implementation of ideas

• Client and end user feedback to be actively sought and utilized to realign KPIs

• Balanced Score card to be implemented to measure performance

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Getting the supply chain to perform

• Choose the right partners

• Move away from arms length supply chain relationships towards partnerships based on trust

• Aim for long term, mutually beneficial goals to curb opportunism

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THANK YOU!

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Creating a first class sales culture throughout your Organization

DOUG TUCKER PROFESSIONAL MOTIVATOR

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THANK YOU!

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Strata, but not as we know it An Abu Dhabi Case Study

RYAN DARNELL EXECUTIVE DIRECTOR - SERVICES

KHIDMAH

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STRATA LAW OVERVIEW - WHAT IS STRATA?

Strata law allows for the subdivision of land and buildings into units and common areas in a jointly owned property. Strata schemes are used to:

• Separate different uses – residential, office, retail.

• Define private unit areas and common areas.

• Determine who owns which areas and who pays for the consumed services in those areas. • Allows for management of the asset.

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WHY USE STRATA?

Why have Strata in Abu Dhabi?

• It defines who owns which areas of a building.

• It provides greater transparency of services and charges.

• Ensures collection of sinking fund for future capital works.

• Ensures owners can influence the value of their investment.

• Is proven internationally as the most effective and fair mechanism for owners in jointly owned property.

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WHAT IS AN OWNER ASSOCIATION?

The Owners’ Association acts for and in the best interests of unit owners

• Owners elect representatives to the board of the Owners’

Association

• The Owners’ Association appoints a manager ( OA Manager ) who prepares service charge budgets on their behalf and assists in the appointment of a facilities manager

• The Owners’ Association structure and related legal documentation are prepared by the developer

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PROBLEMS OCCURRING IN STRATA DEVELOPMENTS

• Disagreement on budgets for common areas

• Short-term mentality of some owners

• Aiming for the lowest possible service charge

• Reserve funds

• No lifecycle assessment or poorly determined lifecycle costing

• Decision made to not use lifecycle costing to keep charge down

• Some properties too small to have dedicated Facilities Mgr

• No subcontracting leading to

• Owners Association seeking MEP provider to support function in non-binding role

• Some Owners Association Managers recruiting FM’s to manage

• Specialist services not being managed

• Segmentation between master community, development and various interests

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AN ABU DHABI CASE STUDY - BACKGROUND

• Example is a development on Reem Island using sub volumetric structure to split areas of responsibility for: • Commercial

• Residential

• Retail

• Developer recognized the need for strata framework prior to handover

• MOU created strata group consisting of: • Developer

• Contractor/Consultants

• Land Surveyor

• Strata Lawyer

• Facilities Manger

• Owners Association Manager and Property Manager

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DEVELOPMENT CONSTRUCTION AND COMPLETION TEAM - STRUCTURE

STRATA &

CHARGES

MARKETING,

PR & COMMS

THE CLIENT

KHIDMAH - PROJECT MANAGER

SURVEYOR

LAWYER

F.M ADVISR

O.A. ADVISOR

KHIDMAH PROJECT MGR

OPS – CONSTRUCT COMPLETION

CLIENT – QA/QC

ERP

CUSTOMER SERVICE

RAMP-UP SERVICES

CLIENT LEGAL

DLP

RETAIL MANAGER

RFG & TENANT CO.

CENTER MANAGER

RETAIL LEASING

RESI. PROP. MANAGER

FACILITIES MANAGER

PROP MANGER

RESIDENT LEASING

PROPERTY MANAGER

SERVICES

COMPLETION &

HANDOVER

RESIDENTIAL RESALES

BULK RESI LEASING

NEW RESI SALES

MARKETING CO-ORD

WEB SERVICES

ADVERTISING

P.R. MANAGER

COMMS CO-ORD

BILLING & COLLECTIONS

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OPERATIONAL STRATEGY

• The Client currently controls the Interim Owners Association until the Laws allows for transition to Owners

• The Client, OAM and FM currently work in unison with the elected OA representatives.

O/A Managers Duties

• Owner Liaison • Service Charge Collection • Meeting & Notices • Administrative Duties • Community Building • Budget Management • IOA Representation

Facility Managers Duties

• Security & Access Control • Common Area Cleaning • Leisure Facilities Operations • 3rd Party Contractor Management • Landscape & Waste • MEP Maintenance • Energy Management • Residential Car Parks

Excludes - Retail; Mall Management as a separate contract outside the Retail OA.

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OPERATIONAL STRATEGY

So what is different from a standard strata development

• Members of handover & fit-out team have remained after defect liability period to ensure compliance.

• The Owners Associations are made up of active members consisting of Developer representation, members with property/engineering backgrounds.

• Owners Association Management and Facilities Management are both owned by developer and part of original handover team.

• Senior members of staff operate on a single hierarchy to decrease potential ‘grey areas’ of responsibility.

• Managers of both the OAM and FM attend regular OA meetings rather than just the OAM.

• Facilities Manager has all services (including subcontracted) contracted to them.

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OPERATIONAL STRATEGY

But what about any perceived conflicts of interest?

How do we create a ‘Chinese Wall’ between OAM’s and FM’s to ensure an ethical, legal and commercial division?

• Ensure the OAM is separate company to allow the OA to vote out 1 or both services if required.

• Ensure reporting lines for OAM and FM are split through to most senior level.

• Ensure process in place to deal with potential conflicts of interest and highlight them to OA.

• External auditing of financials directly to OA.

• OA to interview and select senior members of service delivery team.

• Contract is written by third party legal for the OA with measurable KPI’s.

• Regular OA meetings with senior managers of all parties in attendance.

• All subcontracts signed off by OA.

• Ensuring budget surpluses are visible and are utilized in interests of all.

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• As an FM Team not only do we have to serve The Client, also The OA Manger, and the 5 Owners Committees – This requires Educating our Teams ( Workshops )

• Different OA Expectation from each of the OA Committees along with Owner vested interests

• Creating a Budget with no Historical Data from the site.

• Service Charge rates were coming up very different for each OA, had we the correct Service Charge Model? Was the methodology correct?

• Service Personnel and Stock have to be allocated as per each OA in line with the Budget – creates challenges with inventory management

• SLA’s and KPI’s for each OA had to be different – Residential, Leisure Areas, Office and Retail

• Set of accounts for each OA, audited and presented to both Client and OA

• Utility Bills and their allocation as Metering Strategy was not Aligned to Strata

• District Cooling engaging a third party to meter, bill & collective this charge

CHALLENGES WITH CURRENT MODEL

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HOW CAN THE ABU DHABI MODEL BE DIFFERENT?

Currently there is no strata law in place with stakeholders being engaged. So how could the Abu Dhabi model look?

• Setting third party procedures to allow for OAM & FM to work more in cooperation than competing?

• Accreditation for OAM and FM operators to qualify them and staff to operate strata roles

• Setting robust training & qualifications for those seeking to sit on Owners Association Boards.

• Pre-Education of the various FM Teams on OA management in advance of mobilization - workshops where required.

• Stock inventory allocated from day one ( Handover thru to OA )

• Allowing for more vigorous methods of service charge collection and district cooling charges

• Setting metering strategies that ensure the owner pays capacity charges while the tenant pays consumption

• Ensuring all Owners Associations are initiated at once in a development and not staggered

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HOW CAN THE ABU DHABI MODEL BE DIFFERENT?

• Allowing FM’s to subcontract specialized services with OA sign off on contracts

• Setting communication procedures to allow both the OAM and FM to communicate more proactively to residents

• Balanced scorecard measurement of KPI’s that is accessible by OA members at any time.

• Mandatory lifecycle analysis by third party to be presented as part of reserve fund analysis and reviewed every 3-5 years for the UAE environment and specific development

• Master Community/OA protocols to allow for better communication, especially in emergency situations

• Ensuring that the new proposed law has reasonable expectancies (or phased enactment) on implementation timeframes - from announcement of law through to OA’s operating as entities.

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THANK YOU!

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PANEL DISCUSSION

Engaging the Regions Built Environment

Yasser Al Misfer – SilkRoad Hospitality

Ben Churchill – Emrill Services Dr Marie Puybaraud – Johnson Controls

Mohammed Ahmed Yahya – Wasl Youssef Abillama – MMG / MEFMA Board

Naser Almarzooqi – Masdar City

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WITH THANKS TO OUR SPONSORS